Boston Herald; Boston, Mass.; Jul 8, 2003; Jerry Moskal; Abstract:

Documents in the 2-year-old case said [Alphonse Mourad] was the sole owner of V&M, a Subchapter S corporation in Watertown that owned the 276- unit Mandela Apartments on Washington Street in Roxbury. V&M went bankrupt.

"We agree with respondent that (Mourad) is obviously confusing V&M Management with himself," [Robert P. Ruwe] wrote. "The record demonstrates that V&M Management, and not (Mourad), filed a petition for reorganization in bankruptcy."

The IRS had claimed that Mourad realized an almost $2.1 million capital gain on the sale of V&M's assets in 1997. Mourad denied that he received any of the proceeds from the sale of V&M.

Copyright Boston Herald Library Jul 8, 2003
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WASHINGTON - Alphonse Mourad, former landlord to Boston's indigent, may become $189,745 poorer himself under a recent U.S. Tax Court decision.

On Wednesday, Judge Robert P. Ruwe upheld an Internal Revenue Service ruling that he owed taxes on the $2.1 million in proceeds from the sale of his bankrupt company, V&M Management Inc. Mourad, a Hyde Park resident, said he plans to appeal the ruling.

"I'm also going to sue the IRS for more than $20 million," he said. But Mourad said he can't afford a lawyer and hopes that one will agree to represent him on a "pro bono" basis.

Mourad has 90 days after Ruwe issued his 13-page opinion to appeal.

Documents in the 2-year-old case said Mourad was the sole owner of V&M, a Subchapter S corporation in Watertown that owned the 276- unit Mandela Apartments on Washington Street in Roxbury. V&M went bankrupt.

Mourad contends that Beacon Management, which now runs the apartment building, and the V&M bankruptcy trustee, Stephen S. Gray, should pay the back taxes and penalties.

However, Ruwe agreed with the IRS that while Mourad's former company filed for bankruptcy Jan. 8, 1996, Mourad was not granted personal bankruptcy protection.

"We agree with respondent that (Mourad) is obviously confusing V&M Management with himself," Ruwe wrote. "The record demonstrates that V&M Management, and not (Mourad), filed a petition for reorganization in bankruptcy."

Mourad claims he never received any proceeds from the sale of his bankrupt company. He charged that Beacon and not he got the benefit of a $17 million low-income housing tax credit.

"If (Beacon) becomes the owner and he gets the tax credit, why doesn't (Beacon) pay the taxes?" he said last week.

The IRS had claimed that Mourad realized an almost $2.1 million capital gain on the sale of V&M's assets in 1997. Mourad denied that he received any of the proceeds from the sale of V&M.